Property tax full of contradictions – deeper changes needed
The Ministry of Finance has announced changes to property tax regarding the definition of structures and the taxation of garages, in line with the Constitutional Court's ruling. Lawyers point out, however, that the levy causes so many problems that a deeper reform is needed. But before it is introduced, further disputes are possible - this time concerning the tax exemption for river port infrastructure, as a result of the NSA judgment (ref. III FSK 4345/21), writes the Prawo.pl portal
As pointed out by Michal Nielepkowicz, tax advisor and partner at Thedy & Partners, the changes that the Ministry of Finance is currently working on, i.e. regarding the definition of constructions and the taxation of garages, are crucial.
– However, it is clear from earlier announcements by the MF that a broader reform is also being considered further down the line. In my opinion, it should primarily cover several basic areas. Firstly, it is necessary to construct a catalogue of the subject of taxation that will raise as few doubts as possible, drawing on case law. Secondly, it is necessary to clarify the subject of taxation – for example, whether the lessee (tenant) or the owner pays tax on buildings on leased land. Thirdly, the tax base also needs to be reformed. Entrepreneurs do not understand why they cannot reduce the tax base by depreciation deductions and, as a result, a building, e.g. 30 years old, has the same value for property tax purposes as a new building. Fourthly, there is a need to differentiate the rates, which are currently paid at the same rate on both a dilapidated building and a modern building, says Michal Nielepkowicz.
– Unfortunately, the property tax regulations are full of absurdities. Another is the issue of tax authorities, of which we have 2477 – the number of municipalities in Poland. In practice, this often means different approaches to the same issue by different tax authorities, depending not only on the province but also on the municipality. This is a huge impediment especially for network companies with infrastructure across the country, such as petrol stations or transmission lines, adds Michal Nielepkowicz.
The entire article can be read at this link: Podatek od nieruchomości – jakie zmiany trzeba wprowadzić (prawo.pl)